10-7-2008
Doan Trieu Nhan from the Viet Nam Coffee and Cocoa Association
The past few years have seen strong growth of the coffee sector in terms of cultivation, output and export volume. Currently, coffee plantations area cover about 500,000ha and the country exports roughly 850,000 tonnes of coffee per year.
Coffee has become one of Viet Nam’s key export items, which post export turnovers of over US$1 billion. Vietnamese coffee is exported to 70 countries and territories worldwide.
However, there are more things the coffee industry needs to do to ensure its sustainable development as well as enhance its competitive edge and successfully integrate into the global economy: It needs to improve the quality of coffee. The Ministry for Agriculture and Rural Development has built a roadmap for the country’s coffee industry, which set a target of applying TCVN 4193-2005, the Vietnamese standard for robust coffee export by 2010. The move is expected to result in a better quality of Vietnamese coffee.
In addition to ensuring hygiene and food safety standards for coffee products, it’s necessary for the industry to curb the mass expansion of coffee plantations that could lead to a surplus of supply in the world market and a drop in prices. Vietnamese coffee still relies a lot on the international market.
Furthermore, support to farmers in planting techniques, harvesting and processing the beans as well as market information are also necessary.
Nguyen Thai Hoc, vice chairman of the Viet Nam Cashew Association
Like the country’s other sectors with export advantages, the cashew sector has made ongoing efforts to exploit opportunities brought by the country’s entry into the WTO.
Viet Nam overtook India as the world’s leading cashew exporter in 2006-2007. The country has exported 73,000 tonnes of cashew nuts during the first half of this year, posting an export turnover of $374 million. These figures marked yearly increases of 43 per cent in value and 14 per cent in volume.
We estimate that the cashew processing sector will likely post an annual growth rate of 30 per cent by 2010, responding to the increasing output of raw materials and efforts of local cashew processors in expanding their production. Besides, the strong growth is also due to the fact that some large Indian cashew processors have moved their processing plants from India to Viet Nam and processing cashew nuts for export by using materials imported from Africa.
The difficulties facing local cashew processors are a lack of capital to buy raw materials and invest in machine and technological innovation. As cashew is one of the country’s special agricultural products in the context of global integration, we’ve petitioned the Government to implement suitable lending and tax policies to enterprises processing cashew for export. We suggest the Government impose 0 per cent import tax on raw cashews as well as consider streamlining customs procedures. At present, the Government exempts import duties on raw cashews that are processed for export within 275 days. However, most domestic cashew processors and exporters have failed to meet these requirements and cannot benefit from such incentives.
Do Ha Nam, chairman of the Viet Nam Pepper Association
Even before the country joined the WTO, the pepper sector had already accessed the world economy as the Viet Nam Pepper Association was a full member of the International Pepper Community (IPC), helping the industry ensure its presence in the global market. Viet Nam’s pepper currently holds 30 per cent of the global pepper market share and is the number 1 exporter of pepper in the world.
In order to fully exploit its advantages and take the initiative in further joining the world market, the pepper sector will focus on improving product quality as well as better complying with the international hygiene and food safety standards. I think, it’s not easy work and requires patience. It’s important to change awareness of farmers, training them to shift from the traditional plantation and processing to more advanced technologies.
Besides, Vietnamese pepper is well known in international markets, thus it’s essential for the sector to study the changes in supply and demand of the world market in order to give farmers and exporters updated predictions and warnings, that could help them draw up the effective export strategies.
I think, in the global context, trade promotion is crucial as this will help advertise the image of Vietnamese pepper and create opportunities for enterprises to seek partners and then sign direct contracts without exporting via intermediaries as was previously the practice. In this effort, we really need support from the Government and relevant agencies. — VNS
Source: http://vietnamnews.vnanet.vn
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